There's been a 60 per cent increase in the number of people taking money out of KiwiSaver for financial hardship reasons.

Research firm Canstar says the total amount people are withdrawing is also increasing - that's up 76 per cent over the last two years.

Emma Quantrill from Canstar told Larry Williams it can go on to create a habit of people not saving.

"So further down the track, when it comes to retirement, they will once again be in this cycle of financial hardship because they won't have the income they need at the time."

Canstar suggest more consideration be given to how we can get people contributing again at the earliest possible opportunity.

LISTEN TO EMMA QUANTRILL TALK WITH LARRY WILLIAMS ABOVE